CA Traveler wrote:
I would hope that everyone is aware that merchant prices reflect all costs including credit cards. But that is reality since virtually all sales are via CC.
Example: We both go to the same fuel station and buy $100 of fuel. You pay $100. My CC bill reflects $100 and $5 cash back. I pay $95. No other charges.
I associate transaction fees with foreign countries. There are no transaction fees when I use my Visa card to purchase fuel in Canada and I get 5% cash back on fuel purchases in Canada. Amex does charge 2-3% transaction fee in Canada and hence I don't use Amex in Canada.
Am I missing something, or isn't the transaction fee on a credit car purchase paid by the Seller? If we both buy a $200 TV, me with my credit card and you with cash, we both pay a net of $200. The merchant makes less though on the CC purchase, as they pay the transaction fee on the sale with the credit card, typically about 1.2% for smaller merchants while big box stores negotiate a reduced fee due their huge volume in credit card sales that gets run through the bank of their choice.